Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Merger or Acquisition (February 2020)
15 slides from Franklin Resources's merger presentation, Feb 18, 2020
Slide 1: Franklin Templeton Announces the Acquisition of Legg Mason and Its Group of Leading Asset Managers
Franklin Templeton Announces the Acquisition of Legg Mason and Its Group of Leading Asset Managers February 18, 2020 Franklin Templeton Management Attendees Greg Johnson Jenny Johnson Matthew Nicholls Executive Chairman of the Board President and CEO Executive Vice President and CFO Legg Mason Manag
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this presentation, words or phrases generally written in the future tense and/or pre
Slide 3: Additional Information About the Transaction
Additional Information About the Transaction Additional Information and Where to Find It This filing may be deemed solicitation material in respect of the proposed acquisition of Legg Mason by Franklin. In connection with the proposed merger, Legg Mason will file with the SEC and furnish to Legg Mas
Slide 4: Achieves Multiple Strategic Objectives in a Single Transaction
Achieves Multiple Strategic Objectives in a Single Transaction Adds Leading and Scaled Global Fixed Income Capabilities More Than Doubles Alternative Asset Presence With World Class Real Estate Manager Brings Leadership Position in Important Retail SMA Market Creates Balance Between Institutional an
Slide 5: A Differentiated Transaction That Combines Franklin Templeton With the World Class Investment Organizations of Legg Mason
A Differentiated Transaction That Combines Franklin Templeton With the World Class Investment Organizations of Legg Mason $1.5Tn AUM Balanced Unmatched Leadership Strong Scaled for Across Global in Multiple Investment Accelerated Institutional Reach With Investment Performance Growth and Retail Loca
Slide 6: Transaction Summary
Transaction Summary • Franklin to acquire 100% of Legg Mason for $4.5Bn at $50.00 per share of common stock in an Consideration all-cash deal • Legg Mason affiliates to remain in place with current leadership, strategies and brands • Expect to rationalize the parent company and integrate parent comp
Slide 7: Combination of Highly Complementary Investment Organizations
Combination of Highly Complementary Investment Organizations Common View of Shared View on the Industry Complementary Areas of Strength Investment Independence • Investment performance • Independent investment decisions • Complementary distribution excellence is paramount necessary for truly diversi
Slide 8: Enhanced Range of Specialized, High Quality Investment Capabilities Across Institutional and Retail Channels
Enhanced Range of Specialized, High Quality Investment Capabilities Across Institutional and Retail Channels Asset Class Selected Branded Specialists Selected World Class Capabilities AUM ($Bn)(1) Fixed • Core and core+ • Strong institutional presence Income / • Global macro • MMF / Liquidity manage
Slide 9: Specialization That Is Scaled for Growth
Specialization That Is Scaled for Growth Pro Forma Company Is the World’s 6th Largest Independent Asset Manager Ranking by AUM(1)(2) $Bn 7,430 5,600 2,961 1,900 1,704 1,497 1,226 1,210 1,100 804 723 698 Pro Forma (3) Rank: 1 2 3 4 5 6 7 8 9 10 11 12 Notes: 1. Managers based on 2019 Willis Towers Wat
Slide 10: Positioned to Capture Outsized Growth Globally
Positioned to Capture Outsized Growth Globally Unmatched Reach With Expanded Local Presence in Key International Markets Across U.K., Japan and Australia • Presence in Countries Accounting for >85% of Global GDP With 35 Worldwide Locations(1) Amsterdam Stockholm Edinburgh Poznań Calgary London Warsa
Slide 11: Multiple Opportunities for Significant Growth in Retail
Multiple Opportunities for Significant Growth in Retail Largest Distribution Partners Legg Rank Distributor Franklin(1) Mason(1) Enhanced coverage of critical distribution partners 1. Wirehouse 5 1 • Complementary, long-standing relationships leveraging Legg 2. Independent 1 18 Mason’s strength in w
Slide 12: Diversified and Balanced Platform by Asset Class, Distribution Channel and Geography
Diversified and Balanced Platform by Asset Class, Distribution Channel and Geography Franklin Today: AUM of $698Bn(1) By Asset Class By Client Type (1) By Geography (1) Multi-Asset HNW Alternatives 18% Institutional 3% 6% 25% Liquidity Non-U.S. U.S. 1% 31% Fixed 69% Income 36% • FI / Liquidity: $254
Slide 13: Unlocks Substantial Value Through Efficiency and Expanded Growth Opportunities
Unlocks Substantial Value Through Efficiency and Expanded Growth Opportunities Near-Term Efficiencies Legg Mason • Rationalization of the parent company • Approximately $200MM in anticipated run Holding rate cost savings, net of significant growth functions Company investments in the combined organi
Slide 14: Attractive Near-Term Financial Impact While Maintaining Financial Strength and Flexibility
Attractive Near-Term Financial Impact While Maintaining Financial Strength and Flexibility Pro Forma(1)(2)(3) AUM $698Bn $804Bn $1,497Bn (12/31/2019) LTM Total $5.8Bn $2.9Bn $8.5Bn Operating Revenue LTM EBITDA(4) $1.6Bn $0.6Bn $2.4Bn LTM EBITDA 28% 21% 28% Margin Cash & $8.6Bn $1.2Bn $5.3Bn Investme
Slide 15: A Combination Focused on Growth for the Long-Term
A Combination Focused on Growth for the Long-Term • Committed to providing long-term continuity and stability to benefit all key constituents • All parties aligned toward our common goals and vision Stability • Significant diversification on all metrics (channels, clients, geography, products) • “Al
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